Which of the Following Statements Is TRUE

question 96

Multiple Choice

Which of the following statements is TRUE?

• A)The income tax return is prepared using GAAP.
• B)The income tax return is prepared using rules set by the SEC.
• C)The income tax return is prepared using rules set by the IRS.
• D)The income tax return and the income statement are identical.

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Definitions:

Computer Fraud and Abuse Act

A U.S. law that criminalizes unauthorized access to computers and networks.

Confidential Client Lists

Lists that contain private information about clients, protected to maintain confidentiality and competitive advantage.

Financial Information

Data regarding the economic activities and condition of an individual or organization, including income, expenses, assets, and liabilities.

Responsible Corporate Officer Doctrine

The Responsible Corporate Officer Doctrine is a principle that holds corporate executives and officers liable for the illegal actions of the corporation, even without direct involvement, if they had power to prevent the misconduct.